The following information is available for the Downtown Furniture Company which produces two types of tables. Management feels that the fixed manufacturing costs should be allocated based on direct labor costs and fixed administrative costs should be allocated based on units sold. The amount of fixed administrative costs which should be allocated to the Cherry tables is:
A) $15,500
B) $18,600
C) $31,000
D) $11,625

Question

The following information is available for the Downtown Furniture Company which produces two types of tables.  Management feels that the fixed manufacturing costs should be allocated based on direct labor costs and fixed administrative costs should be allocated based on units sold. The amount of fixed administrative costs which should be allocated to the Cherry tables is:
A) $15,500 
B) $18,600 
C) $31,000 
D) $11,625

Quizplus · Accepted Answer

The Answer of The following information is available for the Downtown Furniture Company which produces two types of tables.  Management feels that the fixed manufacturing costs should be allocated based on direct labor costs and fixed administrative costs should be allocated based on units sold. The amount of fixed administrative costs which should be allocated to the Cherry tables is:
A) $15,500 
B) $18,600 
C) $31,000 
D) $11,625

The Following Information Is Available for the Downtown Furniture Company